Letter Of Intent To Renew Lease Contract Template for the Philippines

A Letter Of Intent To Renew Lease Contract is your formal way to communicate your desire to extend an existing lease agreement in the Philippines. This document serves as an important first step in the lease renewal process, demonstrating your commitment as a tenant while initiating discussions about continuing your tenancy under potentially modified terms.

When do you need this document?

You should prepare this letter when your current lease is approaching expiration and you want to continue occupying the property. Most leases require 30 to 90 days' notice before expiration, so sending this letter well in advance gives both parties time to negotiate new terms. Commercial tenants often send these letters 6 months early to ensure business continuity, while residential tenants typically provide 60-90 days' notice. You'll also need this document if you want to propose changes to your current lease terms, such as rent adjustments, lease duration, or property modifications. Property management companies often require formal intent letters as part of their renewal procedures.

Key legal considerations

While a Letter Of Intent To Renew Lease Contract is generally non-binding, it carries significant practical importance in Philippine lease law. The document should clearly reference your existing lease agreement, including property address, current lease terms, and any reference numbers. You must specify your proposed renewal period and indicate whether you accept current terms or wish to negotiate changes. Under the Civil Code of the Philippines, clear communication of intent helps establish good faith in contract negotiations. If you're proposing rent increases, ensure they comply with the Rent Control Act of 2020, which limits annual increases for residential properties. The letter should also address any outstanding obligations under your current lease and confirm your commitment to fulfilling them during the renewal period.

Legal requirements in Philippines

Philippine law requires that lease renewal communications be clear and properly documented. Under the Civil Code of the Philippines, while oral agreements may be valid, written documentation is essential for enforceability and clarity. The Rent Control Act of 2020 specifically governs residential lease renewals, particularly regarding rent increase limitations and tenant protection provisions. Your letter must include complete contact information for all parties and reference the original lease agreement details. If you're a business entity, ensure the letter is signed by authorized representatives with proper documentation of their authority. Commercial leases may also require compliance with local government regulations under the Local Government Code. For tax purposes under the National Internal Revenue Code, renewed leases may trigger documentary stamp tax obligations, so proper documentation is crucial for compliance.